The Value Proposition to Building Green

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The Value Proposition to Building Green

• Presented to Emerging Green Builders, Madison, WI
• PMA Consultants LLC
• Wednesday February 28, 2007
• Dax Ponce de Leon LEED AP

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A New Development Paradigm

• Incubate Flat BuildTM Project Delivery Method
• Demonstrate viability of cost neutral green
  buildings
• Progress beyond sustainability
• Leverage experience
• Broadcast benefits, remove barriers
• Catalyst for change in community
• Knowledge sharing

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Building Green

• Benefits to Building Green
• Barriers to Building Green
• Tierra on Ashley Incubator Project
• Key Considerations

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Impact of Buildings in the U.S.

• 65 of electricity use
• 36 of energy use
• 40 of GHG emissions
• 136M tons of construction and demolition waste
• 2.8 lbs/person/day
• 12 of potable water use

• 40 of raw materials use globally
• People spend 90 of time indoors
• IAQ 2 to 5 and even 10x worse than outdoor air
• 60 billion annual productivity loss for
  building-related health issues

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Major Benefits to Building Green

• Asset Value
• Marketability
• Business Productivity

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Greater Asset Value

• Competitive first cost reduced operating
  expense equals improved lifecycle.

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Greater Asset Value

• Revenue Expense Income (NOI)

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Improved Marketability

• Leasing
• Higher rates
• Absorption
• Retention
• Public relations
• Recognition publicity
• Goodwill
• Customer/client attraction retention

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Good News for a Change
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Good News for a Change

• If the Ann Arbor Planning Commissions
  enthusiastic reception for an eight-story,
  earth-friendly project planned for South Ashley
  Street is any indication of the direction of
  downtown development, local prospectors had
  better study up on green building techniques.

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Business Productivity is Directly Affected by
Indoor Environmental Quality

• Occupant health
• Air quality
• Ventilation, circulation
• Elimination of toxics
• Natural lighting / daylight
• Exterior views
• Psychology e.g. Biophilia

• Occupant comfort
• Temperature
• Lighting quality
• Controls
• Flexible space

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Benefits of IEQ, as Seen in Recent Studies

• Employee performance
• Speed accuracy, effectiveness, motivation
• Studies report 5 to 15
• Employee health
• Absenteeism, insurance costs
• Retention
• Turnover, recruitment, training, talent
• Risk Management

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Cumulative Building Costs at End of Year 1
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10-Year Lifecycle
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Barriers to Building Green
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Barriers Still Overwhelm, Despite Benefits

• Perception of incremental first cost
• Metrics as of construction are liberally tossed
  about
• Does it cost more?
• First cost v. lifecycle
• New paradigm
• Integrated design
• Shift in roles responsibilities
• Learning curve

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Barriers Still Overwhelm, Despite Benefits

• Building codes
• Lack of incentives for investors
• Risk v. reward
• Planning financial incentives
• Market awareness
• Financial community

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Capital Cost

• Davis Langdon
• No statistical significance to LEED buildings
  having higher cost than non-LEED buildings
• Other project factors shown to have greater
  impact
• Many projects achieve LEED for base budget
• RICS
• Disproved null hypothesis There is no
  relationship between the market value of a real
  estate asset and its green features and related
  performance.

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Tierra on AshleyPMAs Incubator Project
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Objectives of Flat Build

• Remove cost time from process that does not add
  to value
• Supreme team integration
• Transparency to design
• Eliminate impaired communication
• Collaborative process
• Highest level of design achievable on cost
  neutral basis

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Flat Build Ushers in a Whole New Paradigm

• Green Goals firmed up before any designer is
  hired and presides over all disciplines (FEL)
• A flattened organization removes the A/E and GC
  as middle men
• Virtually all vendors 1st tiers
• A no longer rules design
• Design is an all hands process
• A pre-existing, successful relationship is
  predominant selection criteria
• BIM functions as design coordinator

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Greater than 50 energy reduction
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20 from renewables
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Zero storm water discharge
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50 reduced water demand
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Water Treatment Schematic
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Lifecycle Value is a Given
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Key Considerations
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LEED Silver Should be a Foregone Conclusion
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Feasibility StrategiesThe Backward Pass

• Who are end users?
• How can occupants benefit?
• How can investor benefit?
• Research grant rebate opportunities
• Consider the value of stewardship
• Consider volatility of energy (largest OM)
• No canned solutions place-based design
• What are local/regional environmental concerns?
• Micro-climates weather station

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Feasibility StrategiesFront-End-Loading

• LEED can be effective pre-planning guide
• Solidify Green Goals within base program
• Current project delivery methods may be
  inadequate
• Commissioning
• Brainstorm EEMs
• Prioritize goals, targets, possibilities
• Maximize passive design
• Refine re-validate often

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Passive EEMs

• Siting
• Pedestrian / transit
• Building orientation, shape, color
• Exterior envelope
• Natural Ventilation
• Thermal mass / night-time flushing
• Passive cooling
• Solar heating
• Fenestration location, size, type

• Solar lighting
• Shading devices
• Reflectivity shape of interior surfaces

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Active EEMs

• Energy performance
• High efficiency components appliances
• Geothermal energy
• Biomass
• Heat recovery
• Solar air heating
• Underfloor air displacement ventilation
• Controls daylight sensors
• Lower light power density

• Renewables
• Photovoltaics
• Wind Turbines
• Solar hot water